How do I reflect a non-deductible traditional IRA contribution for the current 2018 tax year? TurboTax only asks me about 2017 and previous years.

[WTS4]

My wife and I are filing jointly and contributed $1,600 to a Roth IRA during calendar year 2018. After learning that we would be above the eligibility limit to fund a Roth IRA directly, we recharacterized the $1,600 contributions to a traditional IRA. These were then earmarked as nondeductible contributions. We then proceeded to max fund or nondeductible contributions for the year by adding $3,900 to the account, bringing our total to $5,500 each for 2018. We need to attached Form 8606 to our 2018 return to document our nondeductible contributions. I cannot find a way to make the 8606 attach to the return.
 
On January 3, 2019, the nondeductible contributions were converted to a Roth IRA, effectively completing the “backdoor” Roth strategy. I am trying to complete Form 8606 for the $5,500 of nondeductible contributions for both of us, however, I can only find questions regarding "contribution for 2017 or prior years" while completing the Form 8606 information. I do not have Form 8606 from tax year 2017, as we did not make nondeductible contributions prior to this year. I need to attach the 8606 to my 2018 return to confirm the nontaxable nature of the 2019 conversion.
 
How should I most appropriately enter the recharacterization and nondeductible contributions on my return this year? I know that I will enter the Roth conversion on my 2019 tax return as it occurred in January of this year.

[macuser_22 · Accepted solution]

2018 IRA contributions must be entered in the IRA contribution section.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

[WTS4]

Understood. I have followed those steps, but there is no way for me to identify those 2018 contributions as "non-deductible." The only prompt in the section that discusses "non-deductible contributions" is explicitly with regards to "contributions in 2017 or prior years." It seems to me that I need to reflect these non-deductible contributions in my 2018 filing.

[macuser_22]

Sure there is if you qualify for a deduction the Traditional IRA contribution  interview will ask.  See the screenshot that I added to the answer box.

If you are covered by a retirement plan at work (box 13 checked on W-2), and your MAGI is too high for a deduction then the questions is not asked since it is already non-deductible.

[WTS4]

That is EXACTLY the option I'm looking for, but after several passes through this interview section I have never seen that screen. Any thoughts?

[macuser_22]

I added the last sentence to my last comment.

If non-deductible then a 8606 form will be automatically created with the 2018 non-deductible contribution on line 1.

[WTS4]

You are absolutely right! I did not recognize that TT was already considering those as non-deductible given the retirement plan and MAGI conditions you cited. I reviewed the 8606 to confirm block 1 and TT did just as you said. Thank you!

[Martin205]

HI, My issue is exactly as described in this initial  post from WTS4, but my question is:  If Turbotax is seeing my IRA contributions as "non-deductible" contributions for 2020, then why am I being Taxed again on this money when I am converting it to a roth?